NewAudia Systems, LLC

Important — Please Read Carefully

This AI Usage Policy ("Policy") governs the use of artificial intelligence-assisted features within the NewAudia platform, website, applications, and services (collectively, the "Services"). This Policy applies to ALL users, including Readers, Authors, Publishers, and Administrators. By accessing or using any AI-assisted feature within the Services, you agree to this Policy in full.

Company Identification

The Services are operated by NewAudia Systems, LLC, a limited liability company organized under the laws of the State of Colorado, with its principal place of business in Colorado Springs, Colorado (hereinafter "NewAudia," "Company," "we," "us," or "our"). "NewAudia" is a registered trade name of NewAudia Systems, LLC in the State of Colorado.

This Policy is incorporated by reference into the NewAudia Terms of Service and the NewAudia Acceptable Use Policy. For Authors and Publishers, it is additionally incorporated into the NewAudia Author Publishing Agreement. In the event of a conflict between this Policy and the Author Publishing Agreement with respect to AI content processing of Manuscripts, the Author Publishing Agreement controls.

1. Overview of AI Features on the NewAudia Platform

NewAudia employs artificial intelligence technologies across two distinct functional areas of the platform. Users should understand what each feature does, how it uses content, and what limitations apply.

1.1 Audia — AI Reading Assistant

Audia is NewAudia's built-in AI reading assistant, embedded within each published Audiobook. Audia allows readers to ask questions about the content of any Audiobook they are actively listening to — including questions about plot, characters, themes, and context. Audia responds using information derived exclusively from the Manuscript associated with that Audiobook.

Audia is not a general-purpose AI assistant and does not draw on knowledge outside the content of the specific title being accessed.

Audia operates using a Retrieval-Augmented Generation (RAG) architecture. When a reader submits a question, Audia retrieves relevant passages from the Manuscript's indexed content (referred to in the Author Publishing Agreement as "Ephemeral Intelligence") and generates a response grounded in that content. Responses are generated via third-party AI language model services, currently provided by OpenAI. See Section 5 for third-party disclosure.

1.2 AI Narration Pipeline

When Authors or Publishers submit a Manuscript for ingestion, NewAudia's seven-step automated pipeline converts the EPUB into an AI-narrated Audiobook. This process includes automated text segmentation, outline generation, and audio synthesis via OpenAI's Text-to-Speech (TTS) API. The resulting narration is a computer-generated voice performance derived entirely from the submitted Manuscript text.

Authors acknowledge that AI narration does not guarantee a specific voice, pacing, or stylistic outcome, consistent with Section 2.5 of the Author Publishing Agreement. The AI narration pipeline is a production process, not an AI assistant feature, and no reader-facing AI interaction occurs during narration generation.

2. Author Disclosures — AI Processing of Manuscripts

This section applies specifically to Authors and Publishers who submit Manuscripts to the NewAudia platform. By submitting a Manuscript, Authors grant NewAudia a non-exclusive license to process that content through AI systems as described below, consistent with Article 4 of the Author Publishing Agreement.

2.1 Ephemeral Intelligence Generation

Upon ingestion, NewAudia generates "Ephemeral Intelligence" data from each Manuscript. Ephemeral Intelligence consists of AI-generated indexing, segmentation metadata, and conversational context data derived from the Manuscript text. This data is used exclusively to power the Audia AI reading assistant for readers of that title.

Ephemeral Intelligence is not shared with third parties for commercial purposes, except as necessary to operate the platform (e.g., API calls to OpenAI for query processing). The term "Ephemeral Intelligence" is defined in Article 1 of the Author Publishing Agreement. Authors who have executed that Agreement have already consented to this processing under Section 4.4 of that document. This Policy provides supplemental transparency about how that process works in practice.

2.2 AI Narration Processing

Manuscript text is transmitted to OpenAI's TTS API to generate audio narration. This transmission is governed by NewAudia's agreement with OpenAI and is subject to OpenAI's data processing terms. NewAudia does not authorize OpenAI to use Manuscript content to train general-purpose AI models under the terms of its API agreement. Authors acknowledge that this processing is a necessary technical step in Audiobook production on the platform.

2.3 Data Retention on Manuscript Removal

If an Author removes a Manuscript from the platform or terminates their Author Publishing Agreement, NewAudia will use commercially reasonable efforts to remove the Audiobook from public access within thirty (30) business days, consistent with Section 7.2 of the Author Publishing Agreement. Ephemeral Intelligence data and associated metadata may be retained by NewAudia for a reasonable period for archival, legal, or compliance purposes following removal, as permitted under that Agreement.

3. Reader Disclosures — Using Audia

This section applies to Readers using the Audia AI reading assistant feature while accessing Audiobooks on the NewAudia platform.

3.1 How Audia Generates Responses

Audia's responses are generated algorithmically based on the content of the Manuscript associated with the Audiobook you are accessing. Responses are not pre-written by the Author or NewAudia staff. Because AI-generated responses are produced by automated systems, they may be incomplete, imprecise, or may not reflect nuances present in the full Manuscript.

3.2 Limitations of Audia

Audia is an assistive reading tool only. Audia does not have access to content outside the specific Audiobook being accessed. Audia's responses do not constitute legal, medical, financial, professional, or any other form of regulated advice.

Readers are solely responsible for any decisions made in reliance on Audia-generated responses. NewAudia does not warrant the accuracy, completeness, or fitness for any particular purpose of any Audia output.

3.3 Reader Query Processing

When a reader submits a question to Audia, that query — along with relevant context retrieved from the Manuscript's Ephemeral Intelligence index — is transmitted to OpenAI's API to generate a response.

Reader queries are not stored for purposes of training generalized AI models. Reader query data may be retained in platform logs for quality assurance, abuse prevention, and system improvement purposes consistent with the NewAudia Privacy Policy.

4. General User Acknowledgments

By using any AI-assisted feature within the Services, all users acknowledge and agree that:

• AI outputs are generated algorithmically and are not authored, reviewed, or endorsed by NewAudia or the Author of the relevant Manuscript unless explicitly stated
• AI outputs may be incomplete, inaccurate, contextually limited, or outdated
• AI outputs do not constitute legal, medical, financial, or professional advice of any kind
• Users are solely responsible for any actions, decisions, or reliance placed on AI-generated outputs
• AI-generated outputs do not confer intellectual property ownership rights to the user
• The performance, availability, and specific behavior of AI features may change at any time as the underlying models and platform infrastructure evolve

5. Third-Party AI Services

NewAudia uses third-party artificial intelligence services to power the features described in this Policy. Users should be aware of the following third-party processors currently engaged:

NewAudia selects third-party AI providers based on capability, reliability, and data handling commitments. NewAudia does not authorize third-party providers to use Manuscript content or reader query data to train general-purpose AI models under the terms of its current service agreements.

NewAudia will update this Policy if its third-party AI provider relationships change materially.

6. Prohibited AI Use

Users may not use AI-assisted features within the Services to:

• Generate, submit, or distribute unlawful, harmful, defamatory, or deceptive content
• Impersonate any real individual, entity, or brand
• Circumvent, disable, probe, or exploit any AI safeguard, content filter, or platform security control
• Automate abusive, fraudulent, or exploitative interactions with the platform, including artificial inflation of engagement metrics or Commission calculations
• Attempt to extract, reconstruct, or replicate any Manuscript's full text or proprietary AI-generated outputs through repeated querying or systematic interaction with Audia
• Use Audia or any AI feature to facilitate any activity prohibited under the NewAudia Acceptable Use Policy or Author Publishing Agreement

7. Modifications and Availability of AI Features

NewAudia reserves the right to modify, limit, suspend, or permanently discontinue any AI-assisted feature at any time, with or without notice, and without liability to any user.

Changes to AI features may result from updates to third-party provider capabilities, changes in applicable law or regulation, platform infrastructure decisions, or quality and safety considerations. NewAudia will use commercially reasonable efforts to communicate material changes to AI features that affect the core functionality described in this Policy.

8. Disclaimer of Warranties

All AI-assisted features are provided "as is" and "as available" without warranty of any kind, whether express, implied, or statutory. NewAudia disclaims all warranties with respect to AI features, including but not limited to implied warranties of merchantability, fitness for a particular purpose, accuracy, and non-infringement. NewAudia does not warrant that AI-generated outputs will be accurate, complete, reliable, or suitable for any particular purpose.

9. Limitation of Liability

To the maximum extent permitted by applicable law, NewAudia's total cumulative liability to any user for any claim arising under or related to the use of AI-assisted features shall not exceed fifty dollars ($50.00 USD). NewAudia shall not be liable for any indirect, incidental, special, consequential, exemplary, or punitive damages arising from reliance on or use of any AI-generated output, even if advised of the possibility of such damages.

For Authors, the limitation of liability applicable to the Author Publishing Agreement (Section 6.3 thereof) governs claims related to Manuscript ingestion and AI narration processing.

10. Contact Information

For questions, concerns, or reports regarding this AI Usage Policy or the AI-assisted features described herein, please contact NewAudia using the information below.

11. Policy Updates

NewAudia may update this AI Usage Policy at any time by posting a revised version on the Services. NewAudia will use reasonable efforts to notify users of material changes via email to the address on file. Continued use of any AI-assisted feature following notice of any update constitutes acceptance of the revised Policy.

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